Pactum Dairy Group (PDG), part of the Freedom Foods Group (FDG), has signed a strategic supply agreement for premium high quality dairy milk with China’s Bright Day at a signing ceremony overseen by China’s Premier Li Keqiang and Australian Prime Minister Tony Abbott on the Southern Chinese city of Sanya on the island of Hainan.

Image credit: Flickr User: Martin Kowalski

“We are pleased to announce the formal signing of a Strategic Supply Agreement for premium high quality dairy milk between Pactum Dairy Group and Bright Day,” Managing Director of Freedom Foods Mr Rory Macleod said.

Earlier this year, PDG commissioned a new $45 million ultra-high temperature processing dairy manufacturing plant at Shepparton for manufacturing high value added dairy beverages for the Chinese and SE Asia market, with initial capacity of 100 million litres of dairy milk production.

“Australia has a unique advantage in the supply and manufacture of high quality premium agriculture-based foods. With increasing demand from markets in China and South East Asia for high quality value added product; Australia, through companies such as Pactum, is well placed to play an important role in this supply chain,” Mr Macleod said.

According to the ASX announcement by Freedom Foods, PDG’s state-of-the-art low cost manufacturing assets in UHT formats and Australia’s cheap high quality dairy milk provide the company with a competitive edge over its rivals to conquer the target markets in China and SE Asia.

Bright Dairy is one of China’s biggest dairy producers whose product range incudes fresh milk cheese, powder and yogurt. These high-quality products sell under 6 famous value-added brands, including Excellence Plus and Momchilovtsi, and are being distributed all over China through 400 distributers and in excess of 400,000 sales outlets.

“Based on the above, that we are pleased to be aligned with what is recognized as a market leading, high-quality company with the resources and capability to market and distribute premium dairy products. PDG will look to further building on its relationship with Bright Dairy in the longer term as it expands its product and market presence,” Mr Macleod said.

“We also would like to acknowledge through this process, the support of Australian Government including the Australian Federal Government and the Victoria State Government in their efforts to assist Companies in building a competitive future in supply of high-quality food products. In the future, enhanced trade arrangements between Australia and China will further increase trade between our two countries and build a stronger strategic alignment for the benefit of both countries,” Mr Macleod said.